TerraForm, Post, Endeavor price megadeals; new Post paper active, along with Starwood

By Paul Deckelman and Paul A. Harris

New York, Nov. 28 – The high-yield primary market moved into high gear on Tuesday, pricing some $3.7 billion of new U.S. dollar-denominated and fully junk-rated issues from domestic or industrialized-country borrowers in six tranches, syndicate sources said.

That was well up from the $550 million that had gotten done in two tranches on Monday.

The day’s activity was characterized by a trio of billion-dollar-area deals, including renewable power generating company TerraForm Power Operating, LLC’s upsized $1.2 billion two-part transaction, consisting of five- and 10-year paper.

There were also megadeals from breakfast cereal and consumer foods manufacturer Post Holdings, Inc., which did a tranche of 10.25-year notes, and from oil and natural gas exploration and production company Endeavor Energy Resources, LP with an upsized two-part issue of eight- and 10-year debt.

The new Post bonds were among the day’s busiest issues, moving up modestly, while both halves of the Terra Form deal also finished higher.

Monday’s issue of 7.25-year notes from REIT Starwood Property Trust, Inc. topped the day’s Most Actives list, with the issue slightly above its discounted pricing level.

Away from the new deals, traders saw many names easier on the day, including bellwether energy credit California Resources Corp. and the various issues from European telecom operator Altice.

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